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- Salt Lake City Rents Drop 2.6% YoY
Salt Lake City Rents Drop 2.6% YoY
5 new house-hack opportunities hit the market; $259k price reduction on Provo 6-unit; Build-to-Rent Housing Booms with 90,000 Units Underway
David Robinson
December 11, 2024
New Multi-Unit Listings
> Click images below to view details and run cash flow analysis.
DUPLEX LISTINGS:
FOURPLEX LISTINGS:
5+ UNIT LISTINGS:
Canovo Group may not be the listing brokerage for the above properties. The information provided is not guaranteed and should not be relied upon to make investment decisions. Buyers should complete their own analysis and due diligence before making any investment.
Utah Market Snapshot
Type | YTD Median Sold $/Sq Ft | YTD Total Sold Listings |
|---|---|---|
Multi-Unit (2+ Units) | +7.27% | +16.31% |
Single Family | +3.17% | +5.58% |
> Multi-Unit (2+ Units):
Multi-unit median sold price per square foot is up 7.27% YTD sitting at $254 compared to $236 last year.
Sold multi-unit listings is up 16.31% YTD sitting at 485 compared to 417 last year.
> Single Family:
Median sold price per square foot is up 3.17% YTD sitting at $232 compared to $225 last year.
Sold single family listings is up 5.58% YTD sitting at 34,882 compared to 33,037 last year.
Sold Multi-Unit Listings This Week
Rates & Financing
> Mortgage Rates as of 12/11/2024
Understanding 30-Year Mortgage Rates
Despite Federal Reserve rate cuts, the average rate on a 30-year mortgage has risen. This is because these mortgage rates are closely tied to the 10-year Treasury note rather than the short-term federal funds rate. Influences on the 10-year Treasury rate include expectations of future economic conditions, fiscal policies, and inflation expectations. Additionally, mortgage rates include a spread over the 10-year Treasury yield, reflecting the risks and costs associated with mortgage lending. Recent economic data and election outcomes have pushed the Treasury yields higher, leading to the unexpected rise in mortgage rates.
Source: Mortgage News Daily
Property Management
> Finding the Right People
The right people in the right place makes all the difference in property management. Whether it’s a tenant, handyman or plumber one of the best ways to find the right people is a reference. Ask for references and then when you find good contractors save their info with notes so you can use them later.
Get professional property management for only $59/unit. Learn more.
Headlines & Insights
Featured Story
The Build-to-Rent (BTR) market is flourishing, offering renters a single-family living experience amid affordability challenges, with 90,000 units currently under construction nationwide.
Main takeaways:
Sun Belt leads development: With nearly 57,000 BTR units underway, the South dominates construction, followed by the West with 23,100 units, catering to high demand in states like Texas, Florida, and Arizona.
Appeal of BTR: Built specifically for rental, BTR properties provide single-family homes and amenities, meeting the needs of renters unable to buy homes due to high mortgage rates, tight inventory, and affordability issues.
Future outlook: An additional 10,000 planned BTR units and ongoing construction signal long-term growth for the sector, despite economic uncertainties, inflation, and potential supply chain disruptions under new federal policies.
The BTR model remains a resilient solution, bridging the gap between traditional renting and homeownership in a challenging housing market.
More News and Reports
Rents Drop Nationwide including Salt Lake City: In November 2024, U.S. median asking rents decreased to $1,595, marking the lowest level since March 2022, with a 0.7% decline year-over-year and a 1.1% drop from the previous month. Specifically, Salt Lake City saw rents decrease by 2.6% year-over-year, reflecting a broader national trend of falling rental prices due to an influx of new apartment completions.
Utah ranks fourth nationally in household debt, with an average of $236,197 per household, in a context where U.S. housing debt hit $12.98 trillion in Q3 of 2024. This ranking highlights potential financial struggles for Utah residents despite increasing consumer spending following the 2024 presidential election.
American Fork Duplex Explosion, which resulted in the death of 78-year-old Kathy Harrison, was deemed accidental yet preventable, according to the fire department's final report. The explosion was caused by natural gas from work on an exterior line, not properly managed by inexperienced subcontractors and Dominion Energy employees. The report highlighted the need for better awareness and testing to prevent such incidents.
The U.S. annual inflation rate accelerated to 2.7% in November, aligning with forecasts and highlighting ongoing economic pressures. Core inflation, which excludes volatile food and energy costs, held steady at 3.3% annually. These figures have bolstered market expectations for a Federal Reserve rate cut, with odds for a December reduction now at 99% according to CME Group’s FedWatch.
Multifamily Remains Stable as Market Awaits Policy Changes: Multifamily rents dropped in November, but year-over-year growth stayed consistent at just shy of 1.0%. Recent trends such as variations in regional rent growth and decelerating expense growth continued, while the market waits to see the changes brought in by a new administration.
What did you think of today's report? |
David Robinson
Principal Broker/Managing Partner
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